In 2007, Fears That Losses Would Push Banks into Insolvency

question 28

Multiple Choice

In 2007, fears that losses would push banks into insolvency caused a(n) , as banks _.

• A)liquidity crisis; became reluctant to loan to each other
• B)inflationary spiral; inter-bank real interest rates became negative
• C)bank panic; closed their doors to depositors
• D)asset-price crash; ceased buying each other's assets

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Definitions:

Social Inequalities

Disparities in wealth, power, and prestige among different social statuses and groups in society.

Persistent Feelings

Ongoing and continuous emotions that may significantly impact an individual's mental health and well-being.

Big Five

A model describing five major dimensions of human personality traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Supertraits

Broad personality traits that encapsulate a range of more specific traits, suggesting a hierarchy in personality structure.